Sabana Shariah Compliant REIT, which owns industrial properties in Singapore, has priced its IPO at $1.05 a share, the midpoint of an indicative range, to raise $637 million, IFR reported on Friday, citing sources.
Sabana REIT, Singapore’s first Islamic REIT and the largest Shariah-compliant property trust anywhere, is offering 605.8 million units in the initial public offering (IPO). It had originally set a price guidance of $1.00–$1.10.
The retail tranche of the IPO, which starts later on Friday, will close on Nov 24 and the units will begin trading on Nov 26, IFR added. Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet.
The manager of the REIT had forecast in a draft prospectus a distribution yield of 8.45% for 2011 and 8.48% for 2012 based on the minimum offer price of $1.00. FIL Investment Management Hong Kong, a unit of US fund manager Fidelity, and Bahrain’s al-Salam Bank are among the cornerstone investors that will buy 101.8 million units in the IPO. HSBC is the sole financial adviser for the IPO and is joint global coordinator, bookrunner and underwriter with United Overseas Bank and Daiwa.
Source : The Edge – 19 Nov 2010